Biogen first-quarter profit up 41%, boosts outlook

MelodieWarner

The biotechnology company also raised its full-year earnings estimate by 65 cents to between $7.80 and $7.90 a share on revenue growth of 16% to 18%, compared with its January forecast of 10% revenue growth.

Biogen has been beefing up its sales force and readying its manufacturing supply chain as some drugs in its late-stage product pipeline move closer to entering the market. But the higher expenses have pressured its bottom line of late.

Last month, the U.S. Food and Drug Administration approved Biogen's new multiple-sclerosis treatment Tecfidera, the company's third approved drug to treat the progressive disease that attacks the central nervous system--but its first in the form of a pill.

Biogen reported a profit of $426.7 million, or $1.79 a share, up from $302.7 million, or $1.25 a share, a year earlier. The most-recent quarter included a $5.05 million gain on the sale of rights, while the year-earlier quarter included a $283,000 restructuring charge. Revenue jumped 9.5% to $1.42 billion.

Analysts polled by Thomson Reuters had most recently forecast earnings of $1.61 a share on revenue of $1.42 billion.

Gross margin improved to 36.1% from 28.6%. Research and development costs fell 20% while selling, general and administrative costs jumped 17%.

In the latest quarter, sales of its blockbuster multiple-sclerosis drug Avonex increased 13% to $746 million and sales for the multiple-sclerosis treatment Tysabri increased 9% to $312 million.

Biogen recently paid $3.25 billion to buy Elan Corp.'s (ELN, DRX.DB) interest in Tysabri in order to gain full control ahead of what it expects will be expanded use of the drug.

Shares closed Wednesday at $206.18 and were inactive premarket. The stock is up 41% since the beginning of the year.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.